Do you own rental properties? If you do, I hope they’re producing a nice cash flow for you. But sadly, that doesn’t always happen. Sometimes your rentals produce losses which the IRS classifies as “passive losses” for tax purposes. This is not necessarily terrible because you can deduct those losses against passive income you’ve earned. The rental property losses that … [Read more...]
Beat the recapture tax on your home office!
Do you claim a home-office deduction? Are you thinking of selling your home and buying another? If you are, you’re in luck. You see, if you know what you’re doing, you won’t have to pay the unpleasant recapture tax. And you can increase the tax basis in your replacement home. Which means you win two ways. Want to find out more? Read my new article titled Tax … [Read more...]
Watch out if you keep bad tax records!
This is the story of Nathan E. Lang. And it doesn’t have a happy ending. When it came time to file his taxes, Mr. Lang claimed $16,327 as employee expenses and $17,875 in proprietor expenses on Schedule C. The IRS audited him and didn’t allow him to deduct a single penny. In all, Mr. Lang lost a total of $33,226 in tax deductions and after taking his case to court and … [Read more...]
Should you accept Bitcoin as payment?
There’s a lot of talk these days about Bitcoin. Which is not surprising. You see, more and more businesses are using this virtual currency as a store of value and a medium of exchange. Should you start letting people pay you with Bitcoin instead of greenbacks? Well, it’s certainly worth considering. But before you make a move, you should get all the facts. That’s why … [Read more...]
Don’t miss these tax-free fringe benefits!
The IRS has some good news for you. You read that right. Some good news from the IRS and here it is… Under the “de minimis” fringe-benefit rules, your business can deduct the cost of giving you and/or your employees, flowers, fruit, books, or similar property. And recipients get these gifts tax free! Want to learn more about the regulations that govern these de minimis … [Read more...]